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March 6, 2009

84,000 people could have their electricity shut off

So many people are struggling with utility bills, and have been for so long, that 84,000 Marylanders are at risk of having their electric and gas services cut off once winter restrictions are lifted on April 1, Laura Smitherman reports.

April 1 is the key date, because ...

Utilities can halt service when a customer's balance exceeds $200 for electricity or natural gas, or $300 for both; and when the total due is greater than the deposit. Rules are more lenient for low-income customers who apply for aid, the elderly and those on life support.

State regulations impose further restrictions on utilities during cold weather months for safety reasons. From Nov. 1 to April 1, service terminations are limited when the weather forecast does not exceed 32 degrees for 24 hours. Utilities also must file affidavits confirming that they made personal contact with customers before shutting them off and explaining the reason for doing so.

Now, a number of factors are affecting our bills this winter, including the colder temperatures. While everyone's situation is different, here are a couple of ideas to try to minimize your bills while staying warm:

If you have electric heat with a heat pump, your system is going to be struggling to heat your home when the temperatures fall below freezing, said Tom Reddoch of the Electric Power Research Institute. The system will expend a lot of energy to create a supplemental form of heat when it's that cold and therefore isn't as efficient as it is when it's warmer.  

Consider keeping your thermostat set to a reasonable or even low temperature when you're at home, and using sweaters and blankets as well as using a space heater to keep the limited area where you're located comfortable. That way, you're not heating the entire home to a higher temperature, including the rooms where you're not hanging out.

Those with baseboard heaters could do also try this "zonal heat" approach by turning them on only in rooms that are being used, and turning them off as they leave, he said.

And if you turn down your thermostat for a heat-pump system at night or when you leave the house (say, 60 degrees) and then raise it eight or 10 degrees when you get back, the supplemental heat is likely to kick in again to get the house warm right away. Consider raising it more gradually or if you can, installing a programmable thermostat that can handle that task for you.

If you have gas heat, take a look at the gas supplier listed on your bill. Business columnist and blogger Jay Hancock has been trying to warn people for months that many people locked into 12-month contracts that cost them more per therm --- as much as $1.59! --- whereas their neighbors are paying less than a dollar. He has advised canceling the contract, even if it means paying an early termination fee, because if you're paying the higher prices you'd make up the difference in just a few weeks. Do the math for yourself and decide.

But let's be honest: since we started writing about this issue, we've all heard so much from people who have made sacrifices --- including investing thousands in energy-efficient improvements --- but haven't seen much relief in their bills.

If you have reason to believe your electric meter is malfunctioning, you can call your utility company for a test. HOWEVER. Tech guru Gus warns that according to BGE, the meters are almost always accurate, and if they are inaccurate, they're running slow --- so you may end up paying even more. Check out BGE's powerpoint presentation on high utility bills, presented to the PSC last week. 

The Maryland Public Service Commission can also conduct an independent "referee test" of your meter but some readers have told me they're told that the backlog is so high they will have to wait months until those can be scheduled.  

 

Posted by Liz Kay at 8:16 AM | | Comments (2)
Categories: Budgeting, Cheap/Frugal, Energy/Utilities, Gas prices, Home/Real Estate
        

Comments

Rather than asserting that people's meters are inaccurate, I'm far more inclined to believe that BGE is estimating meter readings instead of actually reading them, and that the estimates are in BGE's favor rather than the customers'. Can someone explain to me how the meter reading is carried out these days? I can't remember a single time in the past 5 years that I've actually seen someone from BGE reading a meter. I would think that, with everyone's meter being read once a month (excluding those on "budget billing"), at least once every so often I would spot my or someone else's meter being read, but I haven't. Do they carry out these readings under the cloak of night? Or are they conducted remotely via ESP? Is the process completely automated these days, and therefore doesn't require a BGE employee to come out and actually read people's meters?

RegW, I will ask the question and get some answers for you! -- lfk.

Another issue not fully addressed here is personal responsibility - how can this woman heat her home at 78 degrees in winter and then ask for a blank check to cover her costs? People need to understand they can shut off rooms, use space heaters and PUT ON ANOTHER LAYER OF CLOTHES

Our family is in the bracket where Obama wants to hike up our taxes and our thermostat does not go above 68. Granted we use propane fire logs and wood burning insert fireplaces but those are used only for extreme cold days and nights

MJE, I don't know enough about this woman's personal situation to say for sure, but two things stood out for me in her story: she has two infants and lives in a poorly insulated home. My guess is she may turn her thermostat to 78, but it probably doesn't feel that way inside.

At the same time, we all should do what we can to learn the most efficient ways to keep warm. Remember, if your house is drafty, turning your thermostat up probably won't help you feel comfortable. Definitely, put on some blankets, cut off some rooms, but stick some old towels or even plastic bags in the cracks under your door or windows to keep your heat from leaking out. --- lfk.

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